Andrea's adjusted gross pay is $40,500.
Adjusted gross pay or income is a modified individual's gross income with several applicable deductions for his/her sum of annual gross pay for tax purpose. There are several possible deductions that have been regulated by the IRS. In this case, interest expense and health expense are the applicable deductions. Therefore, we have $40,500 amount from the sum of annual income ($48,000) minus the interest expense and the health expense ($7,500) which are the applicable deductions that have been regulated by IRS.
